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November 8, 2011  Tue 9:51 AM CT

ATVI: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Activision Blizzard jumped to three-year highs this morning, and one large trader is betting that the gains will hold.

The digital game company released its new "Call of Duty: Modern Warfare 3" title to much fanfare today and will announce its earnings results after the bell. ATVI gapped up as high as $14.40 this morning but has since pulled back to $13.87, still up 0.95 percent. The stock has run up from support near $10 in mid-August.

Topping ATVI's unusual option volume so far today is the action in the December 14 puts. More than 5,000 of those contracts have traded against open interest of just 87.

The biggest block of 5,000 puts went for $0.62. That was the bid price, indicating that they were sold.

This put selling is a bet that ATVI stay above $14 at expiration. The trader is also showing a willingness to buy shares if the stock is below that strike price. Some traders sells puts as a way to get long stock. (See our Education section)
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